The Seattle and Bellevue real estate markets are expected to be the nation’s top performers in 2018, according to the Emerging Trends in Real Estate Report by the Urban Land Institute and PwC (a nonprofit education and research institute. Results were based on interviews and surveys with more than 1,500 real estate investors, developers, and other professionals in the real estate industry. This is the first time since 2009 that Seattle has topped the chart.
Seattle is ranked #1 based on job growth, diverse economy, and a young, educated workforce. All of this research came out before Amazon announced it’s search for a 2nd headquarters, which is appropriate because Boeing and International Trade are what’s fueling the economy, not just Amazon.
While Seattle grows in housing and jobs, Tacoma grows in apartment development. Also on the list, Tacoma actually ranked higher (#9) than Seattle (#14) for multi-family investment.
The primary cause is the Generation Z affect, brick-and-mortar stores must meet the needs of the post-millennial generation’s gadget attachment. Workplace design will also be affected with Gen Z desiring more personal office structure spaces and convenient housing. Millennial’s and Generation number more than 150 million and because baby boomers are staying in their homes longer, this is an opportunity for home builders to create smaller townhouses, condos, and single-family homes.
A demand for more senior housing is also at the top of the list because present inventory does not currently meet the needs of this group. Seniors are expected to grow by 25 million in the next 15 years.
All of this is actually pretty balanced considering Seattle’s overall growth. With our limited supply of homes and housing affordability combined with mortgage interest rates, it all falls in line with basic economic laws. Even so, Seattle’s home prices are climbing faster than they are in one of the hottest real estate markets in the country, San Francisco. The NASDAQ is reporting that home values in the greater Seattle area are growing twice as fast as San Francisco’s. Seattle, along with San Jose, is some of the fastest rising rents and home prices in the country. Both Seattle and San Jose recorded double-digit home value appreciations over the last year.
US home values rose 6.9% over the past year, while Seattle’s home values are 12.4% higher than they were just a year ago. San Francisco home prices increased just 6%. This is the ninth straight month in a row that Seattle home values have been the fastest growing in the nation.
But, as aforementioned, it all makes sense with our growing tech industry, job growth as a whole, and with hundreds of new residents moving into the Seattle area every day.
An experienced & knowledgeable real estate agent, such as Mary Pong, can enable you to be more successful buying or selling in Seattle’s competitive market.